3D Systems (NYSE:DDD) today announced targeted investments to
address rapidly expanding application opportunities for additive
manufacturing (AM) in medical and high-reliability industrial
applications. These investments are another important step in the
company’s aggressive, four-phase initiative to reorganize,
restructure, divest non-core assets, and invest for accelerated
growth, which was announced in August of 2020.
Investment for Growth in Regenerative Medicine through
Acquisition of Allevi In January of this year, following
three years of intense development efforts, 3D Systems announced a
significant breakthrough in its regenerative medicine program,
targeted toward the printing of solid human organs (e.g., lungs)
through a partnership with United Therapeutics. Referencing this
progress, the company also announced plans to expand its
regenerative medicine efforts to capitalize on this breakthrough
technology, applying it in parallel to nearer-term, non-organ human
applications.
With the company’s continuing progress toward in vivo
regenerative medicine applications, there exists a further
opportunity to extend this technology to meet the growing near-term
demand for advanced bioprinting solutions in medical and
pharmaceutical research & development laboratories. These labs
increasingly use 3D bioprinting to create three-dimensional
cellular structures that imitate natural tissues, bones, and blood
vessels in the body, facilitating the in vitro study of
regenerative medicine and the development of new drug therapies. To
accelerate this laboratory focus, the company is pleased to
announce the acquisition of Allevi, a Philadelphia,
Pennsylvania-based developer of bioprinting solutions, comprising
3D bioprinters, biomaterials (also known as bioinks), and
specialized laboratory software. Founded in 2014, Allevi has
established a strong technology base, brand, and distribution
network for this rapidly emerging market, with a presence today in
over 380 medical and pharmaceutical laboratories in more than 40
countries. As a complete solutions provider, Allevi’s business
model aligns well with 3D Systems, and they are well-positioned to
leverage the technology that the company has developed for in vivo
applications to meet laboratory needs on an expanded scale.
This acquisition positions 3D Systems to effectively address a
broad spectrum of applications in the rapidly evolving field of
regenerative medicine which is projected to grow by more than 15%
per year by multiple research houses, including Medgadget, Research
and Markets, and Allied Market Research, and could surpass $18
billion by 2025. Through the addition of Allevi’s technologies and
expertise, 3D Systems plans to develop laboratory and human
applications in the near-term and medium-term, and enable the
development of human organs in the long term. With these building
blocks in place, and the pace of development activities toward
specific, high-impact applications rapidly accelerating, the
company is uniquely positioned to be a leader in this emerging
medical market.
Accelerating the Adoption of Industrial-Scale Additive
Manufacturing through the Acquisition of Additive
WorksIndustrialization of additive manufacturing has been
enabled by the maturing of metal and polymer printing technologies,
and the rapid expansion of printable materials that are well suited
for use in industrial equipment and high-reliability systems, as
well as the human body. Moving forward, a pacing item for AM growth
is software that can support widespread industrial adoption by
those that are generalists in manufacturing. For these individuals,
software that is easy to use and can rapidly optimize the printing
process for new component designs is central to increasing
productivity and improving the as-printed product yield and
performance.
As a pioneer in the industry and a leader in the
industrialization of additive manufacturing, 3D Systems introduced
3DXpert® in 2016. This market-leading software package addresses
each step of the AM workflow from part design to post-process
finishing. In subsequent releases, 3DXpert has refined each step of
the process to both optimize workflows and encompass more
sophisticated printing technology and materials systems. Building
upon this software foundation, 3D Systems is pleased to announce it
has signed an agreement to acquire Additive Works, subject to
regulatory approval. Since its founding in 2015, this Bremen,
Germany-based software company has focused upon simulation-based
optimization and automation of the AM print preparation and
workflow. Using sophisticated algorithms, accessed through a
user-friendly interface, Additive Works’ software allows a
manufacturing engineer to rapidly determine optimum print set up,
such as part orientation and support structures as well as directly
adapt the process set up for effective thermal management and
distortion compensation. This highly automated simulation software,
which interfaces seamlessly with leading CAD systems as well as
3DXpert and other print platforms, increases productivity by
reducing set-up time while improving product yield, throughput, and
component performance. The result is a faster, more reliable
manufacturing process, reduced part cost, and improved component
performance.
Integrating Additive Works’ simulation expertise into 3D
Systems’ software team will enhance the company’s AM software
portfolio and innovation capacity, driving accelerated additive
manufacturing adoption across the industrial and healthcare markets
that the company serves. This includes Additive Works’ Amphyon for
experts as well as the Amphyon plugin for CAD users – both of which
will continue to be sold and supported to customers as a standalone
offering.
Commenting on these two acquisitions, 3D Systems’ President and
CEO, Dr. Jeffrey Graves stated, “We continue to deliver on our
four-phase plan with an increasing focus on investing for
accelerated growth and profitability. I’m excited by the expertise,
capabilities and technologies we are adding to the 3D Systems
portfolio with Allevi and Additive Works. Through these
investments, we are enriching our solutions portfolio to address a
much broader healthcare market, including the extremely exciting
market for regenerative medicine, while accelerating the adoption
rate for AM across industrial applications. These investments will
bring added value to our customers, open new markets for our
technology, and result in accelerated growth and profitability that
will allow 3D Systems to thrive in the exciting years
ahead.”
3D Systems will comment further on these and other recently
announced growth investments in its upcoming earnings call,
scheduled for Tuesday, May 11, 2021, at 8:30 a.m. Eastern Daylight
Time. For more information, please visit the company’s website.
Forward-Looking StatementsCertain statements
made in this release that are not statements of historical or
current facts are forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of the company to be materially
different from historical results or from any future results or
projections expressed or implied by such forward-looking
statements. In many cases, forward-looking statements can be
identified by terms such as "believes," "belief," "expects," "may,"
"will," "estimates," "intends," "anticipates" or "plans" or the
negative of these terms or other comparable terminology.
Forward-looking statements are based upon management’s beliefs,
assumptions, and current expectations and may include comments as
to the company’s beliefs and expectations as to future events and
trends affecting its business and are necessarily subject to
uncertainties, many of which are outside the control of the
company. The factors described under the headings "Forward-Looking
Statements" and "Risk Factors" in the company’s periodic filings
with the Securities and Exchange Commission, as well as other
factors, could cause actual results to differ materially from those
reflected or predicted in forward-looking statements. Although
management believes that the expectations reflected in the
forward-looking statements are reasonable, forward-looking
statements are not, and should not be relied upon as a guarantee of
future performance or results, nor will they necessarily prove to
be accurate indications of the times at which such performance or
results will be achieved. The forward-looking statements included
are made only as of the date of the statement. 3D Systems
undertakes no obligation to update or review any forward-looking
statements made by management or on its behalf, whether as a result
of future developments, subsequent events or circumstances or
otherwise.
About 3D Systems More than 30 years ago, 3D
Systems brought the innovation of 3D printing to the manufacturing
industry. Today, as the leading additive manufacturing solutions
partner, we bring innovation, performance, and reliability to every
interaction - empowering our customers to create products and
business models never before possible. Thanks to our unique
offering of hardware, software, materials, and services, each
application-specific solution is powered by the expertise of our
application engineers who collaborate with customers to transform
how they deliver their products and services. 3D Systems’ solutions
address a variety of advanced applications in healthcare and
industrial markets such as medical and dental, aerospace &
defense, automotive, and durable goods. More information on the
company is available at www.3dsystems.com.
Investor Contact:
investor.relations@3dsystems.comMedia
Contact: press@3dsystems.com
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